Top 9 Crowdfunding Platforms In India For Business 2023

What Is Crowdfunding And How It Works

Crowdfunding refers to the practice of funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the Internet. The objective for raising such funds could be projects such as films, music, business ventures, or public interest causes. Small financial contributions from a number of persons cumulatively may fulfill the fund requirements of the Investee who otherwise lacked access to such funds.

The Consultation Paper on Crowdfunding in India issued by RBI defines Crowdfunding as “Solicitation of funds from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause

Crowdfunding platforms are predicted to be one of the biggest financial changes in history. Commentators are of the opinion that it would revolutionize the way money is exchanged in India. If regulated appropriately, crowdfunding can provide an excellent funding alternative for early-stage startups and ventures.

Types Of Crowdfunding Platforms

1. Donation Crowdfunding

Donation crowdfunding denotes solicitation of funds for social, artistic, philanthropic, or another purpose, and not in exchange for anything of tangible value. Donation-based crowdfunding can also be used in an effort to raise funds for charitable causes.

2. Reward Crowdfunding

Reward Crowding refers to one wherein the investor receives some existing or future tangible product in return for the investment

3. Peer- To-Peer Lending

In Peer-to-Peer lending, an online platform matches lenders/investors with borrowers/issuers in order to provide unsecured loans, and the interest rate is set by the platform. Some Peer-to-Peer platforms arrange loans between individuals, while other platforms pool funds which are then lent to small and medium-sized businesses.

4. Equity Crowdfunding

Equity crowdfunding refers to one in which the investors gets equity shares of the company in return for the investment Heading 06: Future of Crowdfunding

There are three types of people involved in crowdfunding: –

• The Entities that Intends to raise money through this platform
• The Investor who support the idea
• The platform which brings together the fundraiser and the Investor

Top 9 Crowdfunding Platforms In India For Business 2023

Gone are the days when taking loans or getting investors was the only way to kickstart your business. Crowdfunding has come up as a viable alternative in the last decade. Not only is the process low on risk, but it also opens money-raising avenues, depending upon potential and needs. Global crowdfunding is on an all-time high, with the industry expected to cross $114 billion by 2021.

While the stats aren’t well-documented in India, the industry has been on a steady rise with the success of crowdfunding giants like Ketto and Milaap. People in rural India have benefitted from these too. A lot of social activists have also started social service projects through crowdfunding.

1. Ketto

Founded in 2012, Mumbai-based startup Ketto is one of the most popular crowdfunding platforms in India. The platform has been endorsed by several celebrities and ministers alike. It was co-founded by Zaheer Adenwala, Kunal Kapoor, and Varun Seth. It features three major categories: community/social projects, creative arts, and personal development. The three categories include various campaigns like sports, health, women empowerment, animal welfare, education, movies, music, fashion, charity, and more. NGOs can also use Ketto as an eCommerce platform. Fundraisers get a cash pickup facility, helping even those without a bank account.

Depending upon your campaign, Ketto takes 5-8% of the fund raised along with payment gateway charges. The crowdfunding platform is pretty user-friendly with easy navigation.

2. Social For Action

Sakal has stewarded several social initiatives over the past several decades with many of the initiatives going beyond Sakal’s own regional markets, addressing needs across the country. Social impact and social change remains the core of the Sakal’s beliefs even today and with this Sakal is introducing its own Crowdfunding platform – Social For Action. We belief that the role of media today has changed from being an advocate of social causes to being the facilitator or the agent of social change itself.

SFA addresses the many challenges of giving (such as difficulty in discovering the right causes, trust deficit, and overall donor apathy). We share stories of (pre-qualified) individuals and groups with a network of its trusted community and partners, who either specialize in providing and supporting the local communities by promoting products or can connect with the cause to help with a donation.

3. Wishberry

Founded by Anshulika Dubey and Priyanka Agarwal, Wishberry is solely dedicated to creative projects and artists. It voluntarily assists them by assigning a Campaign Coach who is a Wishberry advisor.

The adviser will help you design a campaign, write an effective pitch, make a compelling video, and choose rewards. The coach will also guide you through the effective distribution of rewards. To date, they have helped deliver project creators a remarkable success rate of 70%.

The platform has completed over 325 projects, raising around $1.3m worldwide. Having operated in over 60 countries, Wishberry is now a trusted name among creative startups. There’s also something for the contributors, like tickets to movie premiers, merchandise, name in credit roll, and more. Wishberry charges a one-time fee and 10% of the total commission only when the funding goal is achieved. You can also avail their digital marketing services.

4. Kickstarter

One of India’s oldest fundraising platforms, Kickstarter is also popular for funding creative projects and startups. The platform has had much success in crowdfunding for innovation, research, music, books, and films, among other creative art forms. Kickstarter supports unique initiatives like a photographic series on Indian deities, edible cutlery photography, and more.

The platform also offers various rewards to the donors, depending upon the project. The Sweet Requiem campaign is one of the most successful campaigns on this platform in India. It raised funds for a film based on Tibetan women’s struggles in Tibet and how they’re living in India. Over 300 people contributed to the project, raising over $33,000.

The Edible Cutlery was another such successful campaign. It raised nearly $3,00,000 from over 9000 donors. The platform supports creativity and merchandising and is a delight for aspiring artists and creative startups.

5. FuelADream

A fairly recent startup by Ranganathan Thota in 2016, FuelADream is another reward-based crowdfunding platform in India. The platform focuses on supporting charities, social causes, and creative projects by collecting donations. You can choose between All or Nothing or Keep What You Get campaigns.

If you don’t reach the All or Nothing campaign’s target, you won’t get anything, and all the money would be returned to the senders. The company has an in-house content and marketing team that designs campaigns and online pitches and creates compelling reward systems for every campaign. In both kinds of campaigns, the company would charge a total of 9% of the amount raised exclusive of taxes.

FuelADream takes up only 20 projects a month. They choose projects wisely, going for quality over quantity. Battery-powered bikes and a canal to irrigate arid farmlands were some of the platform’s most successful campaigns. It supports campaigns in multiple languages to appeal to local and regional audiences.

6. Dream Wallets

Dream Wallets is another successful crowdfunding platform dedicated to supporting engineers, artists, and other types of content creators. The platform has also been active in helping the sick. It has over 15% of projects focused on raising money for treatment.

Depending upon your purpose, Dream Wallets would charge a 6-10% commission overall for the funds raised. The donor receives perks and non-monetary benefits like film premiere tickets, merchandise, shoutouts, discounts on products, personalized cards, and more.

Dream Wallets has completed over 650 successful projects that include some very touching campaigns. It’s a good way for you to raise your voice for patients and survivors of various calamities.

7. Milaap

Another successful crowdfunding platform for social causes and personal issues, Milaap has raised nearly INR 330Cr so far! Founded by Saurabh Sharma, Mayukh Chaudhary, and Anuj Vishwanathan, Milaap favors people living in rural areas. People who live under wages of 2 dollars are supported by this crowdfunding platform.

NGOs and social entrepreneurs find this site especially beneficial. Milaap has worked on projects related to hygiene, water, education, energy, and health issues. There have also been a lot of beneficiaries with medical emergencies.

The massive organization has lenders from over 120 countries contributing to over 50,000 projects. Social media has been the primary marketing channel for Milaap. It charges a nominal fee of around 5 to 8% for every campaign.

8. Impact Guru

Started as purely a crowdfunding platform, Impact Guru has now become a fintech startup in Mumbai. Founded by Khushboo Jain and Piyush Jain, the organization helps entrepreneurs, non-profit organizations, startups, and social enterprises raise funds. You can choose investment fundraising, donations, or reward crowdfunding.

It has come as a big boon for entrepreneurs and corporates. The platform has benefitted over 100 organizations and social causes from 6 countries and doesn’t seem to be stopping anytime soon.

You can launch your campaign for free on Impact Guru. You would have to pay 5% of the total funds you have raised. It’s more of a financing option than a platform for a social cause. If you’re a startup with an innovative research idea, you can raise funds from Impact Guru.

9. Crowdera

Another recent crowdfunding platform founded in 2014 by two Indians based in California, Crowdera, is free of cost fundraiser. Crowdera has been helping NGOs, people dealing with personal issues, disaster relief initiatives, etc.

It had raised a whopping $537,000 in just 3 years of its inception and continues to grow at a staggering rate. The platform was started by friends and a third investor and hasn’t monetized itself yet. Crowdera is focused on keeping the service free because the act of doing good shouldn’t be penalized. It’s a wonderful platform if you are trying to raise a voice on a social issue or need help in organizing protests.

The company earns from CSR activities of corporates and enterprises who benefit through Crowdera. They don’t believe in charging those that they’re trying to help.

How to Start a Fundraiser on this Platform?

• Set your funding goal
• Build the pitch of the campaign
• Add a video
• Add perks
• Start sharing your campaign
• Add milestones on the way

Benefits Of Using A Crowdfunding Platform To Raise Money For Your Business

1. It’s more efficient than traditional fundraising.

When you’re an early-stage company focused on building your business and attracting seed capital, you might not be able to afford all the time and attention that pursuing traditional financing demands. Compared to applying for a loan or seeking out accredited investors yourself, setting up a successful crowdfunding campaign on Fundable or another platform is far more efficient and effective in getting your message out to the right people. With the right platform, you can tell your business’s story, produce a quick video, set up some enticing rewards, and benefit from having everything in one centralized location where potential backers can find you.

2. It’s a place to build traction, social, proof, and validation.

A strong, highly visible crowdfunding campaign can provide validation and social proof that’s vital in charting your path forward. When potential customers show interest in your startup’s product or service, you’ve generated social proof—demonstrating that other people believe in what you’re doing. Once early adopters vet and buy into your idea, others are more likely to follow suit. Social proof is translated into traction—whether it’s a large number of backers, pre-orders, or media attention—that’s invaluable as you pitch to other investors.

3. It’s an opportunity for crowdsourced brainstorming to refine your idea.

Hear your would-be backers poking holes in your business plan or asking some tough questions? Take it in stride and accept it as free, crowdsourced brainstorming. The basis of a startup is finding some important, unmet need that your customers have, and deciding to be the one to do something about it. Thus, it’s important to seize any opportunity for customer feedback and consider it in planning your startup. One of the greatest things about crowdfunding is how close it gets you to your customers, giving you a chance to engage them and field questions, complaints, feedback, and ideas. You never know—your company’s next great idea could come from somebody who isn’t even on your payroll.

4. It gains you early adopters and loyal advocates.

The people that power your idea’s social proof are your early adopters and potential brand advocates. They’re the people who believe in your story, product, or service, enough to stake their money on its longevity and long-term success. These early adopters are key to the success of your crowdfunding campaign and the momentum you keep after closing, being the ones most likely to share your vision with friends and family and promote it through their social networks.

5. It doubles as marketing and media exposure.

Press coverage will create more eyes on your campaign and create lasting brand awareness for your startup. This can come in the form of a feature story on a popular news station, blog, or print publication, and is a great way to bring in backers outside of your personal network. A good feature story or Twitter mention can create a powerful snowball effect, putting you in touch with major investors you might not have otherwise reached. Whether they read about your new product on a popular blog or hear about your innovative campaign from a friend, a successful crowdfund is a great way to capture new investor interest.

Crowdsourcing has grown into an excellent way for entrepreneurs and early-stage companies to validate their business, find capital and early adopters, and get the exposure they need to grow. To recap, some of the most powerful ways a crowdfunding campaign can help build more startup momentum than other financing methods are:

• It’s more efficient than traditional fundraising.
• It generates traction, social proof, and validation.
• It’s an opportunity for crowdsourced brainstorming to refine your idea.
• It gains you early adopters and loyal advocates.
• It doubles as marketing and media exposure.

How To Choose The Right Crowdfunding Platform For Your Business

Crowdfunding is an excellent way for entrepreneurs to pinpoint their target audience, raise financial capital, generate exposure for their business idea, and eventually execute a business plan.

There are plenty of crowdfunding platforms out there, but deciding which one will best support your business can be tricky. Here are seven things to consider when deciding how to choose the right platform:

1. Unique crowdfunding goals

Before you sign up for a platform, make sure the end goal of your campaign is clear. At this stage, it might be helpful to create a business plan or strategy. Not all crowdfunding platforms will be a good fit, so it’s important to do your research and see which ones could be a good fit based on crowdfunding projects that they have supported in the past.

2. The purpose of the campaign

What is the purpose of your crowdfunding campaign? Crowdfunding isn’t as simple as setting a target and relying on the kindness of strangers to meet your financial needs. Once you’ve selected a platform, you’ll be able to create a description of your project, as well as upload any videos, photos, or additional links to support your idea. The most successful crowdsourcing campaigns follow a strict business plan that defines the project and clearly identifies fundraising needs.

3. The crowdfunding platform’s structure

There are three different crowdfunding models to be aware of: the donation model, the equity/lending model, and the rewards model. If you use the donation model, backers do not receive anything for their contribution, which means that this model works best when raising funds for a charity or a non-profit. The equity or lending model sees funders receive either a portion of future revenue or shares in the company itself. The rewards model offers investors various rewards for different levels of funding. Typically the reward is the finished product, which is the result of the crowdfunding.

4. Platform fees and missed targets

While the act of crowdsourcing itself is free, most platforms do charge a small fee to sign up. Different sites have different fees, but typically, these costs range anywhere from five to 15 per cent. These deductions can come off of the donations, but sometimes there are also hidden service fees attached. Other fees could come from third parties, like credit card companies or PayPal, depending on how the funds are transferred.

Before you create a fundraising goal, do some research to see if the desired target is realistically attainable. If you do not meet your total goal, you will not be charged a fee, but all of your funds will be revoked and returned to the people who donated money. Each crowdfunding website will have a page devoted to terms and conditions where you will find more information on fee structures.

5. Available payment methods

Crowdfunding platforms support multiple payment methods to verify funds. Three popular methods include authorization holds, credit cards, and a capture. Many platforms use authorization holds to ensure that the backer can, in fact, make the payment. The individual’s bank usually holds these pending transactions for a period of 30 days. Authorizing payment from a credit card, like Visa or Mastercard, is an attractive option for investors, but there is a slight risk involved as you are not able to verify that the payment successfully went through. Capturing the full amount at the time of donation and refunding it if the campaign isn’t successful is another option.

6. Platform support options

Some of the most popular crowdfunding sites are celebrated by users based on the amount of support they offer. Some crowdfunding sites offer integrated business tools on top of what’s included in the crowdfunding plan, like Facebook and Google integration, which helps boost your own marketing efforts. Others have set up 24/7 support hotlines or chats that allow you to access information or resources easily. Choose a crowdfunding platform that provides substantial support to your initial campaign goals.

7. Platform restrictions

While you may have thought you’ve settled on the right crowdfunding platform, be mindful of any restrictions. Some types of crowdfunding campaigns, like equity crowdfunding campaigns, have regulations that must be followed. Always read through the terms and conditions of each platform to make sure it is the best option for your project.

Tips For Creating A Successful Crowdfunding Campaign

This urgency can be multiplied if you’re using an Social For Action platform that only lets you keep your funds if you reach your fundraising goal.

Luckily, we’ve got some of the best crowdfunding tips that can help you raise more money and awareness for your cause, project, or event.

• Target your message.
• Learn what makes a good campaign and a bad one.
• Build a community before launching.
• Speak to experts.
• Know your launch target.
• Use multimedia
• Research and Prepare
• Ask for Donations Early
• Ask the Right People for Donations
• Be Specific About What the Money’s Going Toward
• Offer Incentives (When You Can)
• Write Compelling Copy When You Share Your Crowdfunding Page
• Update Your Crowdfunding Page

Case Studies Of Businesses That Have Used Crowdfunding Successfully In India

For Mark Dharmai, an international para badminton player and World No. 3 in Men’s doubles and Mixed doubles category, it was a dream to win a gold for his country. But being a fisherman’s son, he had limited resources to fund his coaching, travel, etc. A campaign on crowdfunding platform Fuel A Dream helped him raise close to Rs 8 lakh. It also increased his popularity and got him a chance to do a TV commercial for Brooke bond. Plus, he was selected for ASIAD and invited for TED Talk.

Valued at $50 million, HoloSuit, is another example of crowdfunding success. Founded by Harsha Kikkeri and Shwetha in 2016, Holosuit is the world’s first affordable, bi-directional, wireless and easy-to-use full body motion capture suit. It allows users to point, touch and feel 3D objects and helps in creating a complete immersive experience. The campaign was one of the most successful ones on Catapooolt – an entrepreneurial crowdfunding platform. “The domain experts part of the crowdfunding platform showed a lot of interest in our technology. It allowed a lot of exposure, and media coverage and helped build strategic partnerships,” says Kikkeri, Founder and CEO, HoloSuit. The education vertical of the company also won the National Startup Award in 2020.

When Kenny Basumatary planned to finance the release of his second film — Local Kung Fu 2 – he chose crowdfunding. With a budget of just Rs 90,000, he created an action comedy that won over Assam – his home state. Kenny, till now, has directed four films – most of them crowdfunded through Wishberry — a reward-based crowdfunding platform for creative artists. He, recently, also acted in Yaara, a ZEE5 original film directed by Tigmanshu Dhulia and has just finished directing his first Hindi web series, tentatively titled Kar Gayi Chul, for Eros Now. “Crowdfunding helped me achieve my dreams but it isn’t as easy as it looks. People should go for crowdfunding if (a) they already have an existing fan base, or (b) they have a network of generous friends and family, or (c) their project is in a niche likely to have people already interested in it,” he suggests.

The Bottom Line

Crowdfunding can be extremely lucrative when crafted, promoted, and executed properly. A successful campaign requires up-front research to select the platform that best meets your financial and visual needs, a clear message that inspires action, creative and constant promotion by the organization, and consistent communication with campaign donors.

While in-person events may be canceled, the giving spirit has not. And lucky for you: Social For Action has launched a crowdfunding feature to help nonprofits fundraise, thus increasing funds for nonprofits’ various projects!

Social For Action connects campaign owners to funders in a way that is productive and engaging. The uniqueness lies within our various campaign, as a part of Sakal Media Group, we have extensive reach throughout Maharashtra and beyond, the most credible resources which are available to us. We have been previously supported By 2000+ Donors and over 15000+ impact stories.

We want to spur innovation & make access to funds easy through crowdfunding in India; while promoting transparency and accountability. We want to change the traditional methods of how ideas, activities, ventures and organisations are funded by making crowdfunding the go to method of raising funds in India.